In his half-yearly Humphrey-Hawkins report, Mr Greenspan confirmed that the Fed has eased its monetary policy - dealers believe that the target rate for Federal funds was cut by 1/4 of a point to 8 per cent last week - but said this was designed to increase credit availability and not simply to lower interest rates. 'Credit tightening is something we would not like to see happening,' Mr Greenspan told the committee.
As reported by Financial Times
Mr. Alan Greenspan, the Fed chairman, was at pains to stress in his congressional testimony on July 18th that this was a response to recent credit tightening, not to concern about a possible recession.
As reported by The Economist
Mr. Greenspan declined to characterize last week's action as easing, instead describing it as a move to offset credit tightening by banks.
As reported by The Washington Times